Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society. Online banking solutions have many features and capabilities in common, but traditionally also have some that are application specific.

The common features fall broadly into several categories

Transactional (e.g., performing a financial transaction such as an account to account transfer, paying a bill, wire transfer, apply for a loan, new account, etc.)

o Payments to third parties, including bill payments and telegraphic/wire transferso Funds transfers between a customer's own transactional account and savings

accountso Investment purchase or saleo Loan applications and transactions, such as repayments of enrollments

Non-transactional (e.g., online statements, cheque links, cobrowsing, chat) o Viewing recent transactionso Downloading bank statements, for example in PDF formato Viewing images of paid cheques

Financial Institution Administration Management of multiple users having varying levels of authority Transaction approval process

Features commonly unique to Internet banking include

Personal financial management support, such as importing data into personal accounting software. Some online banking platforms support account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions.

[edit] History

The precursor for the modern home online banking services were the distance banking services over electronic media from the early 1980s. The term online became popular in the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line. ‘Home banking’ can also refer to the use of a numeric keypad to send tones down a phone line with instructions to the bank. Online services started in New York in 1981 when four of the city’s major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home banking services[1] using the videotex system. Because of the commercial failure of videotex these banking services never became popular except in France where the use of videotex (Minitel) was subsidised by the telecom provider and the UK, where the Prestel system was used.

The UK's first home online banking services[2] was set up by Bank of Scotland for customers of the Nottingham Building Society (NBS) in 1983.[3] The system used was based on the UK's Prestel system and used a computer, such as the BBC Micro, or keyboard (Tandata Td1400)

connected to the telephone system and television set. The system (known as 'Homelink') allowed on-line viewing of statements, bank transfers and bill payments. In order to make bank transfers and bill payments, a written instruction giving details of the intended recipient had to be sent to the NBS who set the details up on the Homelink system. Typical recipients were gas, electricity and telephone companies and accounts with other banks. Details of payments to be made were input into the NBS system by the account holder via Prestel. A cheque was then sent by NBS to the payee and an advice giving details of the payment was sent to the account holder. BACS was later used to transfer the payment directly.

Stanford Federal Credit Union was the first financial institution to offer online internet banking services to all of its members in October 1994.[citation needed]

Today, many banks are internet only banks. Unlike their predecessors, these internet only banks do not maintain brick and mortar bank branches. Instead, they typically differentiate themselves by offering better interest rates and online banking features.

[edit] Security

Security token devices

Protection through single password authentication, as is the case in most secure Internet shopping sites, is not considered secure enough for personal online banking applications in some countries. Basically there exist two different security methods for online banking.

The PIN/TAN system where the PIN represents a password, used for the login and TANs representing one-time passwords to authenticate transactions. TANs can be distributed in different ways, the most popular one is to send a list of TANs to the online banking user by postal letter. The most secure way of using TANs is to generate them by need using a security token. These token generated TANs depend on the time and a unique secret, stored in the security token (two-factor authentication or 2FA). Usually online banking with PIN/TAN is done via a web browser using SSL secured connections, so that there dfis no additional encryption needed.

Another way to provide TANs to an online banking user is to send the TAN of the current bank transaction to the user's (GSM) mobile phone via SMS. The SMS text usually quotes the transaction amount and details, the TAN is only valid for a short period of time. Especially in

Germany and Austria, many banks have adopted this "SMS TAN" service as it is considered very secure.

Signature based online banking where all transactions are signed and encrypted digitally. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium, depending on the concrete implementation.

Attacks

Most of the attacks on online banking used today are based on deceiving the user to steal login data and valid TANs. Two well known examples for those attacks are phishing and pharming. Cross-site scripting and keylogger/Trojan horses can also be used to steal login information.

A method to attack signature based online banking methods is to manipulate the used software in a way, that correct transactions are shown on the screen and faked transactions are signed in the background.

A recent FDIC Technology Incident Report, compiled from suspicious activity reports banks file quarterly, lists 536 cases of computer intrusion, with an average loss per incident of $30,000. That adds up to a nearly $16-million loss in the second quarter of 2007. Computer intrusions increased by 150 percent between the first quarter of 2007 and the second. In 80 percent of the cases, the source of the intrusion is unknown but it occurred during online banking, the report states.[2]

The most recent kind of attack is the so-called Man in the Browser attack, where a Trojan horse permits a remote attacker to modify the destination account number and also the amount.

Online Banking in Multi National Banks of Bangladesh:

Online Banking functionalities offered by Multi national banks operating in Bangladesh:

1. Payment transaction initiation: a. issuance of Corporate chequeb. issuance of manager’s cheque / Pay Orderc. Utility Bill Paymentd. Fund Transfer within accounts of the same entity

2. Trade Transaction initiation: import LC issuanc

3. Real time reports and statement:a. Account statementb. Payment transaction issuance and outstanding reportsc. Collection reports for reconciliationd. Trade related reports for import and export

Major Multi national commercial banks operating in Bangladesh:

HSBC

Standard Chartered Bank

Citibank, N.A.

Online Banking in HSBC:

Online Banking Platform: HSBCnet

HSBCnet provides access to transaction banking functionality – ranging from payments and cash management to trade services features – as well as to research and analytical content from HSBC. It also includes foreign exchange and money markets trading functionality. This is a global service platform that caters to local business needs by offering specialised functionality for different regions worldwide.

The system is used widely by HSBC's high-end corporate and institutional clients served variously by the bank's global banking and markets, commercial banking and global transaction banking divisions. HSBCnet is also the brand under which HSBC markets its global e-commerce proposition to its corporate and institutional clients.

Features:

1. Browser based tool that helps manage customer implementation2. Customer and bank have same single view of tasks, plans and timeframes.3. Personalizaed portal: Can be customized according to users personal preference4. Can deal with Foreign exchange and Money markets instruments online5. Trade tracking website: separate component of HSBCnet that enables user to identify status of

Letter of Credit transactions.6. Integrations of clients ERP can be done.7. Payment advices

Security:

Audit trail reports for transactional activities

Data encryption using Secure Socket layer (SSL) 128 bit encryption technology

Access Control: system administrators determine what info each user has access to.

System log in and installation: Smartcard based authentication and statis ID/ Password option for system logging in. HSBCnet software must be installed on user’s computer.

24/7 security monitoring and centralized incident management team.

Online Banking in Standard Chartered Bank:

Standard Chartered Bank’s Online Banking Platform: Straight2Bank

Features:

Web based internet banking service that can be accessed from anywhere using a personal computer connected to internet.

Can be interfaced with SWIFT.

One single platform to access cash management, custody, continuous link settlement, trade finance and online treasury management.

Only supported on Internet Explorer for windows.

Transactions can be done in over 100 currencies

Security:

128 bit encryption

Company administrator has full controm of user administration: User set up, user access, password reset etc.

User Login: Smart card based on Global Trust Infrastructure (GTI) encryption solutions

Citibank, N.A.’s Online Banking Platform: CitiDirect

Features:

Mobile banking (also known as M-Banking, mbanking, SMS Banking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). The earliest mobile banking services were offered over SMS. With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers[1].

Mobile banking has until recently (2010) most often been performed via SMS or the Mobile Web. Apple's initial success with iPhone and the rapid growth of phones based on Google's Android (operating system) have led to increasing use of special client programs, called apps, downloaded to the mobile device.

Contents

[hide]

1 A mobile banking conceptual model 2 Trends in mobile banking 3 Mobile banking business models

o 3.1 Bank-focused model o 3.2 Bank-led model o 3.3 Non-bank-led model

4 Mobile Banking Services o 4.1 Account Information o 4.2 Payments, Deposits, Withdrawals, and Transfers o 4.3 Investments o 4.4 Support o 4.5 Content Services o 4.6 Future functionalities in Mobile Banking

5 Challenges for a Mobile Banking Solution o 5.1 Handset operability o 5.2 Security

o 5.3 Scalability & Reliability o 5.4 Application distribution o 5.5 Personalization

6 Mobile banking in the world 7 See also 8 Notes 9 References

[edit] A mobile banking conceptual model

In one academic model,[2] mobile banking is defined as:

Mobile Banking refers to provision and availment of banking- and financial services with the help of mobile telecommunication devices.The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customised information."

According to this model Mobile Banking can be said to consist of three inter-related concepts:

Mobile Accounting Mobile Brokerage Mobile Financial Information Services

Most services in the categories designated Accounting and Brokerage are transaction-based. The non-transaction-based services of an informational nature are however essential for conducting transactions - for instance, balance inquiries might be needed before committing a money remittance. The accounting and brokerage services are therefore offered invariably in combination with information services. Information services, on the other hand, may be offered as an independent module.

Mobile phone banking may also be used to help in business situations as well as financial

[edit] Trends in mobile banking

The advent of the Internet has enabled new ways to conduct banking business, resulting in the creation of new institutions, such as online banks, online brokers and wealth managers. Such institutions still account for a tiny percentage of the industry.[citation needed]

Over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. According to the GSM Association and Ovum, the number of mobile subscribers exceeded 2 billion in September 2005, and now (2009) exceeds 2.5 billion (of which more than 2 billion are GSM).[citation needed]

This article appears to contain unverifiable speculation and unjustified claims. Information must be verifiable and based on reliable published sources. Please remove unverified speculation from the article.

According to a study by financial consultancy Celent, 35% of online banking households will be using mobile banking by 2010, up from less than 1% today. Upwards of 70% of bank center call volume is projected to come from mobile phones. Mobile banking will eventually allow users to make payments at the physical point of sale. "Mobile contactless payments” will make up 10% of the contactless market by 2010.[3] Another study from 2010 by Berg Insight forecasts that the number of mobile banking users in the US will grow from 12 million in 2009 to 86 million in 2015. The same study also predicts that the European market will grow from 7 million mobile banking users in 2009 to 115 million users in 2015.[4]

Many believe that mobile users have just started to fully utilize the data capabilities in their mobile phones. In Asian countries like India, China, Bangladesh, Indonesia and Philippines, where mobile infrastructure is comparatively better than the fixed-line infrastructure, and in European countries, where mobile phone penetration is very high (at least 80% of consumers use a mobile phone), mobile banking is likely to appeal even more.

[edit] Mobile banking business models

A wide spectrum of Mobile/branchless banking models is evolving. However, no matter what business model, if mobile banking is being used to attract low-income populations in often rural locations, the business model will depend on banking agents, i.e., retail or postal outlets that process financial transactions on behalf telcos or banks. The banking agent is an important part of the mobile banking business model since customer care, service quality, and cash management will depend on them. Many telcos will work through their local airtime resellers. However, banks in Colombia, Brazil, Peru, and other markets use pharmacies, bakeries, etc.

These models differ primarily on the question that who will establish the relationship (account opening, deposit taking, lending etc.) to the end customer, the Bank or the Non-Bank/Telecommunication Company (Telco). Another difference lies in the nature of agency agreement between bank and the Non-Bank. Models of branchless banking can be classified into three broad categories - Bank Focused, Bank-Led and Nonbank-Led.

[edit] Bank-focused model

The bank-focused model emerges when a traditional bank uses non-traditional low-cost delivery channels to provide banking services to its existing customers. Examples range from use of automatic teller machines (ATMs) to internet banking or mobile phone banking to provide certain limited banking services to banks’ customers. This model is additive in nature and may be seen as a modest extension of conventional branch-based banking.

[edit] Bank-led model

The bank-led model offers a distinct alternative to conventional branch-based banking in that customer conducts financial transactions at a whole range of retail agents (or through mobile phone) instead of at bank branches or through bank employees. This model promises the potential to substantially increase the financial services outreach by using a different delivery channel (retailers/ mobile phones), a different trade partner (telco / chain store) having experience and target market distinct from traditional banks, and may be significantly cheaper than the bank-based alternatives. The bank-led model may be implemented by either using correspondent arrangements or by creating a JV between Bank and Telco/non-bank. In this model customer account relationship rests with the bank

[edit] Non-bank-led model

The non-bank-led model is where a bank has a limited role in the day-to-day account management. Typically its role in this model is limited to safe-keeping of funds. Account management functions are conducted by a non-bank (e.g. telco) who has direct contact with individual customers.

[edit] Mobile Banking Services

Mobile banking can offer services such as the following:

[edit] Account Information

1. Mini-statements and checking of account history2. Alerts on account activity or passing of set thresholds3. Monitoring of term deposits4. Access to loan statements5. Access to card statements6. Mutual funds / equity statements7. Insurance policy management8. Pension plan management9. Status on cheque, stop payment on cheque10. Ordering cheque books11. Balance checking in the account12. Recent transactions13. Due date of payment (functionality for stop, change and deleting of payments)14. PIN provision, Change of PIN and reminder over the Internet15. Blocking of (lost, stolen) cards

[edit] Payments, Deposits, Withdrawals, and Transfers

1. Domestic and international fund transfers2. Micro-payment handling3. Mobile recharging

4. Commercial payment processing5. Bill payment processing6. Peer to Peer payments7. Withdrawal at banking agent8. Deposit at banking agent

A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. When depositing money, the merchant receives cash and the system credits the client's bank account or mobile wallet. In the same way the client can also withdraw money at the merchant: through exchanging sms to provide authorization, the merchant hands the client cash and debits the merchant's account.

Kenya's M-PESA mobile banking service, for example, allows customers of the mobile phone operator Safaricom to hold cash balances which are recorded on their SIM cards. Cash may be deposited or withdrawn from M-PESA accounts at Safaricom retail outlets located throughout the country, and may be transferred electronically from person to person as well as used to pay bills to companies. One of the most innovative applications of mobile banking technology is Zidisha, a US-based nonprofit microlending platform that allows residents of developing countries to raise small business loans from web users worldwide. Zidisha uses mobile banking for loan disbursements and repayments, transferring funds from lenders in the United States to the borrowers in rural Africa using nothing but the internet and mobile phones.[5]

[edit] Investments

1. Portfolio management services2. Real-time stock quotes3. Personalized alerts and notifications on security prices

[edit] Support

1. Status of requests for credit, including mortgage approval, and insurance coverage2. Check (cheque) book and card requests3. Exchange of data messages and email, including complaint submission and tracking4. ATM Location

[edit] Content Services

1. General information such as weather updates, news2. Loyalty-related offers3. Location-based services

Based on a survey conducted by Forrester, mobile banking will be attractive mainly to the younger, more "tech-savvy" customer segment. A third of mobile phone users say that they may consider performing some kind of financial transaction through their mobile phone. But most of

the users are interested in performing basic transactions such as querying for account balance and making bill payment.

[edit] Future functionalities in Mobile Banking

Based on the 'International Review of Business Research Papers' from World business Institute, Australia, following are the key functional trends possible in world of Mobile Banking.

With the advent of technology and increasing use of smartphone and tablet based devices, the use of Mobile Banking functionality would enable customer connect across entire customer life cycle much comprehensively than before. With this scenario, current mobile banking objectives of say building relationships, reducing cost, achieving new revenue stream will transform to enable new objectives targeting higher level goals such as building brand of the banking organization. Emerging technology and functionalities would enable to create new ways of lead generation, prospecting as well as developing deep customer relationship and mobile banking world would achieve superior customer experience with bi-directional communications.

Illustration of objective based functionality enrichment In Mobile Banking

Communication enrichment: - Video Interaction with agents, advisors. Pervasive Transactions capabilities: - Comprehensive “Mobile wallet” Customer Education: - “Test drive” for demos of banking services Connect with new customer segment: - Connect with Gen Y – Gen Z using games and social

network ambushed to surrogate bank’s offerings Content monetization: - Micro level revenue themes such as music, e-book download Vertical positioning: - Positioning offerings over mobile banking specific industries Horizontal positioning: - Positioning offerings over mobile banking across all the industries Personalization of corporate banking services: - Personalization experience for multiple roles

and hierarchies in corporate banking as against the vanilla based segment based enhancements in the current context.

Build Brand: - Built the bank’s brand while enhancing the “Mobile real estate”.

[edit] Challenges for a Mobile Banking Solution

Key challenges in developing a sophisticated mobile banking application are :

[edit] Handset operability

There are a large number of different mobile phone devices and it is a big challenge for banks to offer mobile banking solution on any type of device. Some of these devices support Java ME and others support SIM Application Toolkit, a WAP browser, or only SMS.

Initial interoperability issues however have been localized, with countries like India using portals like R-World to enable the limitations of low end java based phones, while focus on areas such as South Africa have defaulted to the USSD as a basis of communication achievable with any phone.

The desire for interoperability is largely dependent on the banks themselves, where installed applications(Java based or native) provide better security, are easier to use and allow development of more complex capabilities similar to those of internet banking while SMS can provide the basics but becomes difficult to operate with more complex transactions.

There is a myth that there is a challenge of interoperability between mobile banking applications due to perceived lack of common technology standards for mobile banking. In practice it is too early in the service lifecycle for interoperability to be addressed within an individual country, as very few countries have more than one mobile banking service provider. In practice, banking interfaces are well defined and money movements between banks follow the IS0-8583 standard. As mobile banking matures, money movements between service providers will naturally adopt the same standards as in the banking world.

On January 2009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by CellTrust and VeriSign Inc., published the Mobile Banking Overview for financial institutions in which it discussed the advantages and disadvantages of Mobile Channel Platforms such as Short Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web and Secure SMS.[6]

[edit] Security

Security of financial transactions, being executed from some remote location and transmission of financial information over the air, are the most complicated challenges that need to be addressed jointly by mobile application developers, wireless network service providers and the banks' IT departments.

The following aspects need to be addressed to offer a secure infrastructure for financial transaction over wireless network :

1. Physical part of the hand-held device. If the bank is offering smart-card based security, the physical security of the device is more important.

2. Security of any thick-client application running on the device. In case the device is stolen, the hacker should require at least an ID/Password to access the application.

3. Authentication of the device with service provider before initiating a transaction. This would ensure that unauthorized devices are not connected to perform financial transactions.

4. User ID / Password authentication of bank’s customer.5. Encryption of the data being transmitted over the air.6. Encryption of the data that will be stored in device for later / off-line analysis by the customer.

One-time password (OTPs) are the latest tool used by financial and banking service providers in the fight against cyber fraud [7] . Instead of relying on traditional memorized passwords, OTPs are requested by consumers each time they want to perform transactions using the online or mobile banking interface. When the request is received the password is sent to the consumer’s phone via SMS. The password is expired once it has been used or once its scheduled life-cycle has expired.

Because of the concerns made explicit above, it is extremely important that SMS gateway providers can provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of service level agreements (SLAs) is a requirement for this industry; it is necessary to give the bank customer delivery guarantees of all messages, as well as measurements on the speed of delivery, throughput, etc. SLAs give the service parameters in which a messaging solution is guaranteed to perform.

[edit] Scalability & Reliability

Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile banking infrastructure to handle exponential growth of the customer base. With mobile banking, the customer may be sitting in any part of the world (true anytime, anywhere banking) and hence banks need to ensure that the systems are up and running in a true 24 x 7 fashion. As customers will find mobile banking more and more useful, their expectations from the solution will increase. Banks unable to meet the performance and reliability expectations may lose customer confidence. There are systems such as Mobile Transaction Platform which allow quick and secure mobile enabling of various banking services. Recently in India there has been a phenomenal growth in the use of Mobile Banking applications, with leading banks adopting Mobile Transaction Platform and the Central Bank publishing guidelines for mobile banking operations.

[edit] Application distribution

Due to the nature of the connectivity between bank and its customers, it would be impractical to expect customers to regularly visit banks or connect to a web site for regular upgrade of their mobile banking application. It will be expected that the mobile application itself check the upgrades and updates and download necessary patches (so called "Over The Air" updates). However, there could be many issues to implement this approach such as upgrade / synchronization of other dependent components.

[edit] Personalization

It would be expected from the mobile application to support personalization such as :

1. Preferred Language2. Date / Time format3. Amount format4. Default transactions5. Standard Beneficiary list6. Alerts

[edit] Mobile banking in the world

Mobile banking is used in many parts of the world with little or no infrastructure, especially remote and rural areas. This aspect of mobile commerce is also popular in countries where most

of their population is unbanked. In most of these places, banks can only be found in big cities, and customers have to travel hundreds of miles to the nearest bank.

In Iran, banks such as Parsian, Tejarat, Mellat, Saderat, Sepah, Edbi, and Bankmelli offer the service. Banco Industrial provides the service in Guatemala. Citizens of Mexico can access mobile banking with Omnilife, Bancomer and MPower Venture. Kenya's Safaricom (part of the Vodafone Group) has the M-Pesa Service, which is mainly used to transfer limited amounts of money, but increasingly used to pay utility bills as well. In 2009, Zain launched their own mobile money transfer business, known as ZAP, in Kenya and other African countries. In Somalia, the many telecom companies provide mobile banking, the most prominent being Hormuud Telecom and its ZAAD service.

Telenor Pakistan has also launched a mobile banking solution, in coordination with Taameer Bank, under the label Easy Paisa, which was begun in Q4 2009. Eko India Financial Services, the business correspondent of State Bank of India (SBI) and ICICI Bank, provides bank accounts, deposit, withdrawal and remittance services, micro-insurance, and micro-finance facilities to its customers (nearly 80% of whom are migrants or the unbanked section of the population) through mobile banking.[8]

In a year of 2010, mobile banking users soared over 100 percent in Kenya, China, Brazil and USA with 200 percent, 150 percent, 110 percent and 100 percent respectively.[9]

Dutch Bangla Bank launched the very first mobile banking service in Bangladesh on 31 March, 2011. This service is launched with ‘Agent’ and ‘Network’ support from mobile operators, Banglalink and Citycell. Sybase 365, a subsidiary of Sybase, Inc. has provided software solution with their local partner Neurosoft Technologies Ltd. There are around 160 million people in Bangladesh, of which, only 13 per cent have bank accounts. With this solution, Dutch-Bangla Bank can now reach out to the rural and unbanked population, of which, 45 per cent are mobile phone users. Under the service, any mobile handset with subscription to any of the six existing mobile operators of Bangladesh would be able to utilize the service. Under the mobile banking services, bank-nominated ‘Agents’ perform banking activities on behalf of the banks, like opening mobile banking account, providing cash services (receipts and payments) and dealing with small credits. Cash withdrawal from a mobile account can also be done from an ATM validating each transaction by ‘mobile phone & PIN’ instead of ‘card & PIN’. Other services that are being delivered through mobile banking system are person-to-person (e.g. fund transfer), person-to-business (e.g. merchant payment, utility bill payment), business-to-person (e.g. salary/commission disbursement), government-to-person (disbursement of government allowance) transactions

Introduction:Bangladesh is still lagging behind to avail the opportunity of e-business.However, banking sector as a whole has been introducing on line banking systemwhich plays complementary role to spread of e-business. Internet has opened a newhorizon of e-business, creating immense opportunities for marketing products as wellas managing organizations banking internationally. Gradually wire less Internetsystem has been creating a new paradigm and electronic fund transfer can have asuitable formation.E-business can improve the quality of the services, save customers valuabletime, movement from one place to another and receiving the goods accurately. Ebusinessbrings a new channel of distribution process. But this leads to change in theregulatory issues, cross border trade through emerging new marketing distributionchannel. This reduces transaction time, boundary less trade, and accuracy. Indeveloped nations, e-business creates an opportunity to directly selling of the productto the customer without using any intermediaries. This process occurs mainly in thefour systems: businesses to business (B2B), business to consumer (B2C), business togovernment (B2G) and consumer to consumer (C2C).E-business expedite the processof better customer relationship management. It also helps to attain enterprise resourcemanagement as well as “e” to “e” process. As such on line banking system can addvalue and value chain can be created in the e-business process. In turn it helps to raisegross domestic product of the country.Governments as well as different international organizations have alsoidentified that underdeveloped banking technology creates hindrance on economicprogress of the country. On line banking system is a way of conducting, managing,and executing banking transactions utilizing information and communicationtechnology (ICT) and electronic communication networks such as the Internet,intranet and extranet. Environment of electronic banking requires authenticationprocedures for electronic payment system, network environment, computer hardwareand software, electronic hardware, legal bindings, etc. The security and authenticationof modern banking are very much dependent on cryptography and its applications.Ramakrishnan(2001) argued that many banks have assumed that Internet bankingprimarily increases information security risks and have not sufficiently focused on theeffect on other banking-specific risks. Risk management disciplines have not evolvedat the same speed and many institutions, especially the smaller ones, have not beenable to incorporate Internet banking risk controls within their existing riskmanagement structures.As information symmetry and free flow of information is gaining moreimportance due to globalization process, Bangladeshi companies have to compete inthe world market to serve corporate and other clients with round the clock services.Access to computer would be beneficial to Bangladesh like any other country. Socialand economic disparity and lack of Internet accessibility which creates digital divideis a great hindrance towards customer dissatisfaction of the business organizationwhich ultimately results negative customer relationship management. As a result itcreates negative impact on economic development of the country. E-businessprocess creates an opportunity for doing business through arranging real time sharingbusiness. Organizations can take help of transaction process through e-businesssolutions from around the world where on line facility can be available.4Due to advancement of technology, business process of the globe is gradually

becoming complex for which e-business especially in the banking sector cansupersede the traditional business process. Through e-business the country cancompete with the changing global business trend and on line banking can facilitate ebusiness.Literature Review:Buffam(2000) depicted that companies that build the better e-business solutions willoutperform their competitors. Companies that build the very best e-business solutionswill transform themselves into zero-latency enterprises. Companies that choose not toembrace e-business, or do so ineffectively, will underperform or be driven out ofbusiness.Turban et al. (2000) argued that following points of managerial issuesare very important: Focus of Electronic commerce management; Sales promotion;Purchase process reengineering; Just-in –Time delivery; New electronic intermediarybusiness; Provision of solutions; Business ethics.Rahman (2001-2002) observed that issues relating to electronic fund transferrequire security, availability, authenticity, non-repudiability and audibility. Hesuggested for appropriate control and efficient security measures and also for properutilization of audit trail in the e-commerce system.Ali(2003) argued that Bangladeshi companies, organizations have severalproblems to start full swing e-business. These include limited resources,backwardness in technology, managerial inefficiency, socio-infrastructural problemsuch as corruption, default culture law and order situation, rampant corruption, strikeetc. which penetrate for long time.Ali, Mohsin, and Yasmeen( 2004) observed that maximize e-business effortsto focus on information dissemination, knowledge transfer, and technical assistanceare required .Steps need to create appropriate knowledge among various procedures ofe-business.Huda, Momen and Ahmed(2004) commented that the banking sector inBangladesh is clearly recognizing the importance of information technology to theircontinued success.Hoq, Kamal and Chowdhury (2005) argued that a key reason why ecommerce,especially the business-to-business segment, is growing so quickly is itssignificant impact on costs associated with inventories, sales execution, procurement,intangibles like banking, and distribution costs. If these reductions become pervasive,e-commerce has the potential to be the application that ushers in the large productivitygains. Achieving these gains is therefore contingent on a number of factors, includingaccess to e-commerce systems and the needed skills. However, what is unique aboutecommerce over the Internet and the efficiency gains is that it promises the premiumplaced on openness. To reap the potential cost savings fully, firms must be willing toopen up their internal systems to suppliers and customers. This raises policy issuesconcerning security and potential anti competitive effects as firms integrate theiroperations more closely.5Uddin and Islam(2005) observed that the multifarious projections of ICT inhuman life plead a wining case for institutional integration of ICT related componentsin rural support programs taken by Governments and NGOs.Chaffey (2006) dealt with strategy and applications of E-Business and ECommercein a logical but robust manner. He stressed that e-business and e-commerce is veryimportant for management implications as such a bridge to link leading edge researchand professional practice is required.

Mia, Rahman and Debnath(2007) observed that the latest development inmarketing financial services by banks is online banking, where banks have now putthemselves in the World Wide Web to take advantage of the Internet’s power andaccess to cope with the accelerating pace of change of business environment.Pires and Stanton (2007) commented that policy wise government mustrecognize that the ability of countries to engage in e-commerce is tied both directlyand indirectly to their attractiveness for FDI.Ahmed and Islam (2008) observed that adopting e-banking services, banks indeveloping countries are faced with strategic options between the choice of deliverychannels and the level of sophistication of services provided by these deliverychannels.Chandrasekhar and Sonar (2008) depicted that banks will reap the benefits of IT trulyand totally, if and only if they pay adequate attention to technological progress as wellas efficiencies on the input and output sides.Shamsuddoha(2008) argued that in Bangladesh, banking industry is matureto a great extent than earlier period. It has developed superb image in their variousactivities including electronic banking. Now modern banking services have launchedby some multinationals and new local private commercial banks. Electronic bankingis one of the most demanded and latest technologies in banking sector.Ahshan(2009) agued that online transaction would boost the gross domesticproduct (GDP) growth and thus help Bangladesh achieve the MillenniumDevelopment Goals (MDGs). In the era of globalisation, the Internet makes the worldsmaller and e-commerce facilitates marketing and shopping from home. E-commercefacilitates business with customers over the internet. In e-commerce, customers canbuy goods and services over the Internet.Islam and Yang(2009) observed that service quality satisfaction andinformational trust had important mediating effects on the Balance score cardperformance process. These two mediating roles explain that, when an institutioncreates and raises the levels of service quality satisfaction and informational trust, theresults lead to a favorable customer interaction relationship and thus could help theinstitution achieve higher levels for Balance score card performance measure.Nyangosi , Arora , Singh (2009) argued that banking through electronicchannels has gained increasing popularity in recent years. This system, popularlyknown as 'e-banking', provides alternatives for faster delivery of banking services to a6wide range of customers. The overall result indicates that customers in India andKenya have developed positive attitudes and they attach much importance to theemergence of e-banking.Shah and Clarke (2009) focused on human, operational, managerial, andstrategic organizational issues in e-banking. They argued that e-banking managementcan help to expedite doing business through using electronic medium.Rahman(2010) who is the Governor of Bangladesh Bank argued thatBangladesh Bank has achieved a historic milestone in the trade and business arena,departing from conventional banking with the introduction of e-commerce recently; agiant stride towards digital Bangladesh .From the aforesaid literature review, it is evident that on line banking can actas a complementary towards e-business. With the help of e-business the country cancreate opportunities as this will help both producers and customers. But thesetheoretical observations may not be feasible in this country .As such the study seeks

to evaluate whether the country has proper infrastructure for doing e-business? Whatare the statuses of e-business and on line banking of the country? Does on linebanking really works as a complementary to e-business in Bangladesh? Aforesaidquestions arises which the study intends to examine.Objectives of the Study:The study has been undertaken with the following objectives:i) To examine infrastructural situation of the country to prosper e-business and online banking system in Bangladesh;ii) To observe present status of on line banking in Bangladesh;iii)To evaluate whether on line banking system can work as a complementary to ebusinessprocess ;iv)To provide some recommendations so that e-business can bring fruitful results inthe country.Methodology of the Study:The study is based on secondary sources and also primary sources. As suchthe study has reviewed different published articles, books, newspaper, and websites.However, exact references are mentioned in this article. The study will also collectrelated information regarding present status of the on line banking through field visitin forty eight banks (forty- seven banks after merger of two banks on 3rd

January,2010) head office and in charge of IT and MIS Dept. Moreover, also visitedCentral Bank i.e. Bangladesh Bank to collect related information. The study collectsdata on following points: Services provided by the banks, software use by the banks,name of the vendor’s and bank’s name which is given in Appendix in Table: A.Moreover, the study also did a survey through preparing a questionnaire. Forcollecting data from the respondents’, the study used snowballing sampling techniquewhich is also known as a chain referral sampling type. Snowball sampling techniqueis used to discover and enlist “hidden populations,” who may be difficult to locate.The survey was conducted among 500 customers’ comment those have been using online banking system. Customers’ are of following banks: Sonali Bank Ltd., BASICBank Ltd., Dutch Bangla Bank Ltd., Standard Chartered Bank, Trust Bank Ltd.,Prime Bank Ltd., Uttara Bank Ltd. Detail list of no. of respondents of each banks7(including male and female customers’) are given in Table: B in Appendix. Thesecustomers’ are from Dhaka and also Chittagong city. Fact that on line banking ismainly concentrated in the Dhaka city .However, in Chittagong city also on linebanking system is also being expanded .Out of 500 respondents, 381 persons arefrom Dhaka city while 119 person from Chittagong city.Observations through field study were obtained are being reported at thepresent status of the on line banking system. Time period of the study is up toFebruary 2010.The study did not use any sort of correlation or regression analysis asthis study is mainly based on qualitative nature.Present Status:Bangladeshi companies, organizations are facing problem to start full swing ebusiness.Network is a mode of communications with the computers. Networks ofcomputers can be classified in following ways: Local area network, Metropolitan areanetwork, and World Wide area network. Multiple computers connected throughtelephone lines, cable systems, and in wireless technology are also required. Accordingto a report published in The Daily Star(4th April,2010) Bangladesh ranked 118th in theglobal Network Readiness Index in 2009-10 up from 130th a year ago, showing an

upward trend in the information and communication technology sector. In South Asia,India ranked 43rd, Sri Lanka 72nd, Pakistan 87th and Nepal 124th in the 'GlobalInformation Technology Report 2009-2010' released by The World Economic Forum(WEF) on 3rd April,2010.As such Bangladesh has to go long way to develop itsnetwork for arranging Digital Bangladesh by the year 2021 and public and privatecooperation and strategic alliance is required to develop e-business system in thecountry.Electronic Payment Systems for e- business includes characterized by broadgeographic presence and acceptance by a large number of merchants or programs.Participants in an electronic payment system may include users, financial institutions,business personnel, industrialist, merchants’, third party processor etc. WiMAXstands for Worldwide Interoperability for Microwave Access which offers wirelesstransmission of data via different transmission modes, from point-to-multipoint links toportable and fully mobile internet access.The Finance Minister recently argued at triallaunching of operation of the country’s first-ever wireless broadband technologyWIMAX. He commented that entrepreneurs of the telecommunications sector mustreach the digital communications system to the doorsteps of the rural people. He hopedthat the WiMax technology will be available at every divisional headquarters within ayear(Source: http://www.bangladeshinfo.com/gadgets/news_inner.php?nid=2343, July22, 2009)Telephone density is awfully little in Bangladesh. It is far much less in comparisonwith other developed nations of the world as well as neighboring countries. Kabir(2008)depicted that Mobile Phones(millions) are 36.4, Fixed Lines (PSTN) (millions) are 1.2Total telecom users (millions) are 37.6, Teledensity (%) is 26.8 in the year 2008. OutsideDhaka, at present a few computer network infrastructures have been developed so far.Apart from some educational institutes outside Dhaka, observation finds that most of theLAN setups are Dhaka centric. Bangladesh has been connected to worldwide InternetSuper High Way from 2006 through an under sea submarine cable. But this singlesubmarine cable frequently faces disruption resulting in slow bandwidth.8A huge digital divide exists among the city of Dhaka , Chittagong and other parts ofthe country. Private-public partnership is a crucial issue for information andcommunication technology (ICT) development and application. Private enterprise andcapital can lead ICT revolution in Bangladesh. This, however, would require thegovernment to provide the basic business environment. Rapid growth in ICT is notpossible without massive investments for ICT infrastructure and human resourcedevelopment in the computer and electronics l and telecommunication engineering coursesthrough ensuring quality education. Still now call charge of cell phone is not competitive inBangladesh. Bangladesh Telecommunication Regulatory Commission (BTRC) is notplaying due role in the development process of communication sector. Infrastructuralproblems are creating less scope to successfully implement e-business.Under the private initiative, Internet was started in 1996 by ISN in Bangladesh.ISN is the first ISP operator in this country. Still now all the Internet service providers havethe server in abroad, for which they are facing competitive disadvantage, as cost remainshigh. Security problem is still high in this country. Lack of digital accessible personnel isreal problem for the country. Moreover, some software developers of the country aren’twell conversant with the market demand for which they cannot supply application softwarewith faultlessness.Policy makers of the country are not aware about the benefits of e-business .As such they

don’t put significance on proper and systematic development of the process of e-business.In this connection it may be stated that Bangladesh bank is trying to implement automatedclearinghouse through utilizing (Magnetic Ink Character Recognizer) MICR procedure.But in developed nations MICR procedure is now replaced by more sophisticatedprocedure such as cheque truncation process.Total numbers of Banks in Bangladesh are forty seven. Banking sector inBangladesh on the basis of utilization of electronic devices can be subdivided into threegroups: i)Foreign Commercial Banks and Private Commercial banks especially 2nd(exceptfew banks) and 3rd generation Private Banks :Fully Online banking; ii)1st generationprivate banks and some 2nd generation Private Commercial Banks: Medium range Onlinebanking system ;iii)Nationalized Commercial Banks , Specialized Banks and Few foreignBank branches of this subcontinent :Low grade online banking system..At present the banks in Bangladesh are using the limited electronic bankingservices. It is expected that bank can attain more profit and offer better services to itscustomers by, introducing on line banking facilities. The foreign commercial banksoperating in Bangladesh like Standard Chartered Bank , Citi Corp. N.A. and the HSBC arethe pioneers to introduce the electronic banking facilities. They provide ATM, Debit Card,Credit Card, Home Banking, Internet Banking, Phone Banking, on line banking etc.services.Among the indigenous banks, the Private Banks are ahead of the public banks.Prime bank ltd. , Dhaka bank ltd., BRAC bank ltd., Dutch-Bangla bank ltd.,, Eastern andMercantile bank ltd., are already stepped on towards electronic banking facilities. Apartfrom these banks, Mutual Trust Bank ltd., also introduced ATM service. Among the fourNationalized Commercial Banks (NCBs), Janata bank ltd., has some access to theelectronic banking facilities. Bangladesh Bank, the Central Bank of Bangladesh, is alsotrying to formulate the wide structure of electronic banking facilities. All of these privatebanks offering limited on line banking services. Most of these banks only offer services byproviding ATM card. Most of them do not offer wide range of internet banking facilitieswhich is the main advantages of e-banking. Can deposit money in any branch andwithdraw money from ATM machine- is treated the best e-banking facility available inBangladesh While electronic money transfer starts in a limited edition. Sonali and Agranibank ltd., is also providing on line banking services in a limited scale. Rupali Bank ltd. isalso developing on line banking. BASIC bank which is 100 percent public owned butserved as private sector banking has a technological advancement. Detail types of bankingservices offered by various banks are given in appendix.9A broad spectrum of Internet banking services, a subset of electronic finance, is availablein Bangladesh with different degree of penetration. The credit card is available fromVISA, MasterCard and VANIK. Some foreign banks provide electronic fund transfer(EFT) services. It is at an early stage and used on a very limited scale. Microchipsembedded Smart Card is also becoming popular in the country, particularly for utility billpayment. Automated teller machine (ATM) is expanding rapidly in major cities. A groupof domestic and foreign banks operate shared ATM network, which drastically increaseaccess to this type of electronic banking service. The network will gradually be extended toother parts of the country.Last couple of years shows dramatic improvement in the awareness situation in thebanking sector regarding the comprehensive application of ICT. Local software companieshave been starting competition to supply useful complete banking software with all thebasic features of banking module. However, many forms of electronic banking services are

not possible to offer in Bangladesh at this moment due to the technology backwardness,infrastructural underdevelopment and legal infrastructure. Those products would be veryuseful for export-oriented industry to reduce lead-time in export and keep comparativeadvantage in the international market.For sending foreign remittance four nationalized banks and fifteen private banksare working collaboratively with mobile phone service operators. Recently remittancecould be sent in Bangladesh by banking channel through account transfer (normally takes 3working days) or in the form of instance cash (takes 24 hours). Foreign resident people cansend their money and PIN (personnel identification number) through mobile phone. As aresult money transfer becomes relatively easy, quick and hassle free. But this system alsosuperseded by mRemittance system. According to a Ahemd (15th April,2010) in arevolutionary step on April 13,mobile remittance service or mRemittance was introducedin the country opening doors to millions migrants workers to help transfer their hard –earned money easily ,effectively and most importantly ,swiftly. The first ever remittanceservice for Bangladesh was jointly launched by two local banks –Dhaka Bank ltd. andEastern Bank ltd. – and the country’s second largest mobile operator ,Banglalink.Credit card facility fully can not be extended in the country, as common gatewaybetween financial institutions can not be established. Pricing mechanism of the products ofcountry is not competitive, rater it is very much volatile. This creates a negative impact onthe customers’.To eradicate digital divide process has been started very slowly. Bogora, Kushtia,Barisal and Modhupur village of Tangil was bringing under preview of Internet banking isa complete virtual bank which started on 2nd May of 2000. This will gradually givefollowing services: e-marketing, e-shopping mall, e-marriage scheme, e-mail, e-tender , evoting/polling, search engine, chat, e-commerce, e-stamp, e-Cash, e-music, eentertainment,e-treatment, e-Advocacy etc. E-governance can help us to achieve goodgovernance of the country.If Govt. doesn’t take proper incentives to spread the computerization process thenthere will be no benefit. The parliamentary members of the country must be aware of thebenefits of Information and Communication Technology (ICT) otherwise it can not besuccessful. It won’t bring any dramatic changes in the economy. EntrepreneurshipDevelopment fund (EDF) of Bangladesh bank is should be utilized properly. Only a fewcompanies can avail the fund. ICT related companies are trying to develop e-businessprocesses but their activities are limited. If proper procedure of e-business can bedeveloped in the agribusiness sector especially in the rural areas through utilizing etechnologythen it will be beneficial for the producers of the agricultural commodities.Acute shortages of human resources interested to do online banking business arealso one of the main reasons for lagging behind. However, as law and order situation isdeteriorating so there is a positive impact on the e-banking considering the safety of thepeople.From the field visit, it reveals that banking sector requires rapid modification andadaptation to keep harmony with the world business. It becomes more obvious by10observing the increased number of customers in some modern banks while others arelosing them. In the context of Bangladesh, a country of more than 150 million people, it isto be realized that there is no other option for us than to join the current trendAccording to news report published in the new Nation on 28 th August 2009 thegovernment has formulated a policy on the national information and communicationtechnology as part of its announced plan for digitization of the nation. The policy has

earmarked activities in three phases in the short, medium and long-term plans to beimplemented within 2021.The government aims at doubling the gross domestic products(GDP) during this time to achieve the goal. The policy details suggest a number ofactivities including spreading the use of keyboard by functionaries at different levels,encouraging the use of standard code by software sellers, developing a national web-portaland popularizing the use of e- citizen services, paying service charge through mobilephones or ticketing etc. Land registration, passport renewal, digitization of police casedairy and case position in the court, spreading the use of broadband internet throughout thecountry and such other essential services may also be brought under the scheme. The newpolicy will be the common property of all departments and organs of the state targeted todevelop a digitized nation within the stipulated time.Most of the existing banking system in the country outside Dhaka and Chittagongcity is manual (paper based) that’s why is awkward, slow and error-prone. It, in one hand,fails to meet the customers’ demand and, on the other hand, it causes some significantlosses both for the banking authority and traders. Electronic banking, on the other hand,solves the above problems. Furthermore, it opens up some other salient aspects such asincreased foreign trade and foreign investment. At present weekly bank holiday inBangladesh is in Friday and Saturday where as in rest of the world it is in Sunday. As suchBangladesh has only 4 banking days for foreign exchange transactions. With preliminarystage e- business facilities and this limited time period (banks’ transaction days) how longwe can survive- is a debate. Bangladesh government should consider this case carefully.According to a report on “Bangladesh is developing electronic paymentinfrastructure”(May 20,2008) the Securities and Exchange Commission (SEC) inBangladesh proposed IT Consultants Limited (ITC), a manager of Q-cash brand of ATMand different cards, to raise their paid-up capital up to Tk 500 million if the company is toproceed to initial public offerings. The Securities and Exchange Commission (SEC) hasasked us to raise the company's paid-up capital Tk 50 crore from the current Tk 37 crore.In case the company fails to comply with the SEC requirements to increase the paid-upcapital within the time specified, it will have to gain the approval of the SEC again. Thismeasure is believed to extend the sphere of the company's influence. The company beganas a private limited business in 2001. But now it is the local leader in electronic paymentsystems which are developing in the country with increased speed. ITC possessesnecessary tools to process transactions for banks and retailers. It has the largestindependent network of more than 100 ATMs in the country. There is also a wide networkof point-of-sales (POS) centers operated by the company.(Source: http://www.ecommercejournal.com/news/bangladesh_is_developing_electronic_payment_infrastructure_0?drgn=1)According to the report published in The Financial Express(3rd November,2009)Bangladesh Bank gave the ground breaking directives to commercial banks through acircular issued on 2nd Novemebr,2009, saying that from now on their clients can paypower, water, gas and phone bills from bank accounts and transfer funds within a bank orto other banks. The central bank said that online payments will be treated like any othercash transaction although it reminded the banks that these money transfers would beregulated by the country's strict Anti-Money Laundering Act. The country had only about400,000 credit card holders at the end of June last year, according to Bangladesh BankPayments and transactions by credit cards were nearly Tk11 billion in June 2008 --- one ofthe lowest in the world. However, banks still need massive ICT backbone to ensure thatonline transaction can not be misused.Meanwhile, Bangladesh bank started Automated11

Clearing house on trail basis from 8th November, 2009.Bangladesh Bank also declared thatthe clearing house won’t accept any cheque from 1st April 2010 if size of the cheque is notas per the guideline of the MICR system. However, in Bangladesh digital divide among theDhaka city and rest of the country is conspicuous. E-business as a whole is confinedamong very few business organizations and on line banking business is expediting processof the e-business of the country.Filed level study:Total numbers of different categories of banks are currently forty -seven. TheBangladesh Development Bank Ltd (BDBL) began operations, on 3rd January, 2010through merger of Bangladesh Shilpa Bank and Bangladesh Shilpa Rin Sangstha. From thefiled survey we observe that following banking services are being provided by differentbanks:• Core Banking• Cluster Banking• Phone Banking• SMS Banking• Internet Banking• Various Cards• ATM Shared (VISA/MASTER)• ATM own (VISA/MASTER)• EFT• SWIFT• PC Banking• POS Terminal• Banking KIOSK• Offline Branch ComputerizationDetail of the field survey regarding software uses’, vendor’s name and services are given inthe appendix in Table: A.However, from the field survey it is evident that foreign commercial banks andprivate commercial banks are relatively in a better position to provide on line bankingservices.Moreover, when contacted with Bangladesh Bank then it was informed that BACH(Bangladesh Automated Clearing House) is yet working in SIT (System IntegrationTesting) phase. SIT is expected to be completed within first half of January 2010. In thefirst phase, only Dhaka will be under this umbrella and all bank branches in Dhaka regionmust be part of BACH. Bangladesh Bank (BB) in its Dhaka office is using 7 inch * 3.50inch MICR encoded cheques in BACH. Cheque truncation will be done, some banks willtruncate fully (meaning at branch level) while some partially (meaning at a central point).BB will also provide bureau service, if needed by any bank initially. Clearing is for interbanktransaction. It will be settled by BB after t+1 days.Customers’ Response:Out of five hundred customers’ who have been using on line banking system,following results have been gathered from the questionnaire through using snowballsampling technique.Table:1 Customers’ Response who have been using on line banking system (% ofRespondents who expressed “Yes” comment)CommentDhaka(Inpercentage)

Chittagong(Inpercentage)On line Banking services is relatively good than manual system 79% 65%On line banking provides good Customer service 72% 61%12Just in time services in Banking can be provided 56% 48%Bank Personnel behave properly 52% 56%Dealing officer is well conversant about their respective Desk work48% 47%Technologically improved but quality of banking services worsen off 51% 44%Better E-business environment 67% 61%(Source: Compiled on the basis of Customers’ response)From the aforesaid findings it is observed that impact of on line bank has a mixedresult though most of the customers’ support that it provides good customer services. Thissupports our null hypothesis. But the problem lies that customers’ thought thattechnologically improved but quality of banking services are worsen off. In case of otheropinion survey most of the customers’ are providing “yes” results which also indicate thatnull hypothesis is correct However, in the opinion pull survey there is a question regardingdealing officials of the commercial banks whether they are well conversant about theirdesk work? The reply indicates that 52% and 53% customers of Dhaka and Chittagongthoughts that dealing officers of the banks are not well conversant about their desk work.Now we are showing diagrammatic representations.Fig:1Opinion of the Cusomers' who are habituated On line Banking systemOn line Banking servicesis relatively good thanmanual systemOn line banking providesgood Customer serviceJust in time services inBanking can be providedBank Personnel behaveproperlyDealing officer is wellconversant about theirrespective Desk workTechnologically improvedbut quality of bankingservice worsen offBetter E-businessenvironment

Analysis of the Findings:E-business is still not very much progressed in Bangladesh. Mass awareness is notfeasible. The country faces problem of developing human-ware. Without preparing humancapital at the level of international standard, we cannot be able to compete in global marketand successful e-business cannot be feasible.From the filed level study we observe that still nationalized commercial banks andspecialized banks are lagging behind of on line banking services. Moreover, customers arenot satisfied with the quality of the services. They are not also very happy with thebehavior of the bank personnel. However, it reveals that e-business especially with the helpof on line banking can manage economy of Bangladesh in a far better way as customerrelationship management increases.Local Banking software should be developed properly and must have greateraccessibility within the country and outside the country. Moreover, to produce hardwareespecially computer and its accessories, local entrepreneurs are not taking any sort ofstrategic planning. Bangladesh Bank should adopt latest technology but due to lack ofvision they are adopting old technology i.e. introduction of MICR for Bangladesh Bankautomation procedure. MICR system should be substituted by cheque truncation system.The shortage of technology-based human resources and poor telecommunicationinfrastructure needs to be overcome to break low equilibrium trap. Bridging the digitaldivide would provide technology-based human resources, who can contribute to raise grossdomestic product (GDP), national savings ,investment ,creation of employment and

13moving out from the vicious circle of underdevelopment. .Numerous problems have been identified from the field survey on line bankingsystem in Bangladesh. Some of them are in the followings:• Inefficiency and inadequate knowledge of the bank management about the on linebanking.• Lack of proper Strategic plan to gain and retain market share of the indigenousbanks.• Lack of international standard communication channel.• High cost of establishing on line banking system.• Inadequate back and front office management.• Lack of integrated plan among the banks and the Central Bank authority.• Inefficient Clearing House Facilities.• Inappropriate software and less trust by the Bank authorities on local software.• Biased-ness of the management of bank towards foreign software.• Legal barriers and appropriate policy framework.The number of customers taking banking services does not capable to bear the costof additional equipments like computer, computer accessories , Internet etc. from their ownorganization or at home. Biometrics should be more strengthened. Using Internet facilitystill very costly and people has little knowledge in operating computers. A few numbers ofcyber café is available but for banking purpose customers do not feel safe to use thesefacilities. As a result total numbers of customers who are habituated in on line bankingsystems are limited. In these circumstances investment for establishing e -banking facilitiesseems profitless.Although on line banking has bright prospects, it involves some financial risks aswell. The major risk of on line banking includes operational risks (e.g. security risks,system design, implementation and maintenance risks); customer misuse of products andservices risks; legal risks (e.g. without proper legal support, money laundering may beinfluenced); strategic risks; reputation risks (e.g. in case the bank fails to provide secureand trouble free e-banking services, this will cause reputation risk); credit risks; marketrisks; and liquidity risks. Therefore, identification of relevant risks, and formulation andimplementation of proper risk management policies and strategy formulations andimplementations are important for the scheduled banks while performing on line bankingsystem. Ramakrishnan’s(2001) suggestion may be followed for risk management.Benefits of Electronic Business and on line banking system:Managers at various levels of organizations especially in underdeveloped countrylike Bangladesh will have to play vital roles to successfully implement e-business. Theymay act as strategic leaders at different stages of managerial capabilities. They are the keyforces to initiate dedicated strategy to change from the traditional business processes to thetechnology driven business processes. This is not involving only huge costs as a transitionperiod of organizations but adaptability of the human being in the new processes to addingvalues are required. Due to global changing environment, to succeed in the global arena aswell as domestic business, organizations often forced to do business in the electronic ways.Moreover, to succeed over the competitors’ organizations needs to be changed their strategyand they are gradually become bound to adopt e-business. At these stages successfulimplementations depends on all the stages of the Hierarchy of the Management i.e. startingfrom the Top Management level to the lower level management.On line banking system works as a complementary factor of electronic business.

Though electronic business has a greater set of field but on line banking can work as a14subset of the e-business .Benefits derived form the e-business largely depends on successfulimplementation of the business process.Managing external pressure as well as internal pressure should be coordinated by themanagement so that e-business can supersede traditional business processes oforganizations .Moreover, transformation process requires huge cost especially organizationsof Bangladesh. Greater and cautious resource management especially financial capabilityshould be handled by the management of the organizations. Flexible innovative changesprocessed by the management of the organizations are required for the organizations tosucceed in the transformation process. Changing processes should consider socio-economicand cultural environment as well as labor surplus country. Business process reengineeringmay be designed with the aim that personnel of the organizations will use thetechnological functionalities which will lead to further enhancement of the organizations.As such strong motivations by the management towards all level of personnel of theorganizations are required. Managers’ functionality to implement e-business is a stressfultask for which their mindset should be strong and they should consider not only globalconsiderations but also consider domestic situations.E-business can add value through knowledge management as it helps to attain newservices to the customers. Successful e-business depends on sharing of strategic knowledgefor which dissemination of the information and free flow of knowledge around the globe isrequired. On line banking can provide twenty four hours banking facilities. Throughelectronic data interchange customers are able to draw money from one branch to another.Letter of credits can be sent through SWIFT or electronic fund transfer from one countryto another can be feasible. Actually on line banking provides faster, reliable services.Encryption and decryption can be used to send money from one place to another. As suchon line bank management handles customers in a far better way.In Bangladesh decision makers are generally reluctant about advancement oftechnology. It is difficult for people who do not have much technical knowledge tounderstand the necessity of adoption of new technology. So the pace of computerization invarious offices, business enterprises and sectors are low.Another problem of initiating E- business is that in our country policy makers,managements are generally reluctant to accept something new. As such management prefersto maintain current business model and that’s why they are reluctant to introduce something new.To avail the advantage of E- business, organizations including banks have to investfor software, hardware, infrastructure development etc. The owners are uncertain about thepositive return on investment as transformation from manual system to electronictransaction involves huge cost. This is a great drawback to implement E-business at a fullswing. But the organizations are not interested to invest because they consider hugeexpenses.In Bangladesh most of the business organizations are running centralized manner.As such visions, missions, goals of the top management of various organizations are veryimportant. Top management should change their mindset and like Bangladesh Bank, theyshould encourage e-business process. Top management views are reflected to the mid levelmanagement and lower level management. Unfortunately most e-business efforts fail fornon-performing visions, missions, goals and tactics at the business processes of theorganization.Discussions and Conclusions:

Due to advent of e-business especially on line banking system, the distributionchannel is also changing. But quality of banking services should be international standard.15To attain more effective and efficient business procedure, Bangladesh has to producecommodities of global standards. Ali, Mohsin, and Yasmeen( 2004) observation may befollowed to attain e-business efforts through information dissemination, knowledgetransfer, and technical assistances. However, Bangladesh’s global Network Readiness Indexshould be improved from present situation.From the respondents’ opinion in the area of Dhaka City and Chittagong city ofthe on-line banking user customers we observed that null hypothesis is accepted whilealternative hypothesis is rejected. It indicates that on line banking can provide bettercustomer relationship management. As per findings behavior pattern of the bank personnelshould be improved. Not only technological improvement is desirable but also bankingservice as a whole should be better off. Chandrasekhar and Sonar’s(2008) comment shouldbe considered as not only technological progress but efficiency of the banking services arerequired as on line banking customers’ are not still fully satisfied with the services.Study on customers’ feedback is partially supported by the findings of Nyangosi ,Arora , Singh (2009) as they argued that banking through electronic channels has gainedincreasing popularity in recent years. However, policy makers should consider Shah andClarke (2009) observation. Because from the customers’ feedback, the study observes thatpaying attention on human, operational, managerial, and strategic organizational concern ine-banking is required. Moreover, bank personnel should be well conversant about theirrespective desk work. This is also applicable to other organizations which areimplementing e-business in the country. Otherwise customer relationship managementcannot be improved. Buffam’s (2000) comment is more practical for the companies ofBangladesh as e-business will lead to attain competitive advantage as will they canoutperform their competitors.The study also done to observe different types of services and use of software’s bythe banks. From the field level study we observe that Core Banking, Cluster Banking,Phone Banking, SMS Banking, Internet Banking, Various Cards, ATM ,SWIFT,PCBanking, POS Terminal, Banking KIOSK, Offline Branch Computerization are beingprovided. From the point of view of on line banking, still foreign banks are providing moreon line banking services than private commercial banks. Then nationalized commercialbanks and last being on line banking services are being provided by specialized banks.Ahshan’s(2009) observation is important for Bangladesh as it will help to enhanceeconomic development. Creation of appropriate personnel/professional can improve theeconomic condition of the country. As such stress should be given to develop human ware.E-business can play important role to reduce poverty only when it can be effectivelyutilized for spreading the business both in rural and urban areas, creation of jobopportunities, removing middlemen in the business process and one to one direct sellingprocess and increasing both income and saving.Internet accessibility should be used for poverty reduction. Following should keepmore emphasis on e-business: IT firm; Export/Import traders; Export oriented/Potentialexport business; Facility provided ISP/Internet; Infrastructure development- Govt.;Ministry of Commerce, Ministry of Law, Ministry of Science & ICT, Export promotionbureau; Telecommunication / Infrastructure ;Awareness on IT benefits among the mass. Inthis regardGovernor of Bangladesh Bank Rahman (2010) rightly points out that a holistic approachneeds to be taken by all the stakeholders to reach the ICT facilities to the doorstop of the

common people. Actually e-technology can be utilized with other computer peripherals toenhance communication, skill ness and understanding and provide a sound basis forimplementing e-business. It can be helpful to accelerate the learning process, including theacceleration of the development and application of knowledge and technology. Thisincludes development of the system and infrastructural development and support where16followings are required: (a) E-procedure, (b) Browser based system development, (c) Webenable of legacy and/or client server systems, (d) Enterprise application integration, (e)Implementation or use of application server technology. Ahmed and Islam’s (2008)observation should be cautiously taken so that adopting on line banking services for whichbanks in Bangladesh can develop strategies for expediting not only banking business butalso providing customers’ satisfaction.Business sector should be encouraged that make their own investment in theapplication of ICT in production, trade and services. Procurement and utilization of fundsfrom national sources, both public and private should be pursued. International developmentand donor agencies should be approached to provide funds to set up necessary infrastructureand development of human resources, confirming to the objectives of ICT policy. Shah andClarke (2009) observation about the e-banking can be transformed for successful e-businesspolicy formulation as it depends on human, operational, managerial, and strategicorganizational issues. Islam and Yang(2009) rightly observed that service satisfaction andinformation trust can play positive role to attain e-CRM and balance score card modelwhich is not only valid for the financial institutions but in a large extent i.e. businessprocess of the country.Economy of Bangladesh is still underdeveloped and one of the main reasons isbanking system is not properly developed. Technology is one part but personnel should bewell conversant with their respective desk work and behavior pattern should be improved.Government as well as different international organizations have also identified thatunderdeveloped banking causes some costly obstacles on the way of even economicprogress of the country. Investors are frequently scared in invest because of its sluggishbanking system. Hence the task of making the banking system of Bangladesh at perinternational standard deserves the highest priority. Business processes should be reengineered.Banks will have to face stiff competition in the world market with increasing ofimpact of globalization and the banks will be forced to offer twenty –four hours bankingservices online. Regulatory issues relating to security measures of electronic banking canbe improved through the following ways:a) Analyzing the potential risks in the electronic payments systems;b) Existence of tradeoff between the efficiency of the financial system and the amount ofrisk incurred;c) Competitive pressures that may encourage the banks to engage in competitivederegulation; d) Effective provision and arrangement for cryptography and its applications;e) More customers’ are willing to accept e-business as psychological patterns of thecustomers’ have been changing.Global financial system has getting stronger day by day and it is strengthening bythe e-business. Around the globe, consumer market has greater potentialities and producersmust be active otherwise they may lose their share in the marketing strategies. Customerretention is feasible through arranging e-business otherwise if switching cost is low andother factors in between two companies are similar then customer will switch from onecompany to another where technological advancement is relatively higher. Moreover, rateof call charge of cell phone should be lowered. Hidden cost in cell phone should be

removed. However, on line banking as well as electronic fund transfer and electronic datainterchange is not free from risk. Not only security risk, but cost of transactions may alsobe raised .In this regard Rahman’s (2001-2002) observation regarding risk should becautiously handled.The country can be benefited through successful utilization of e-business .This willhelp to enhance productivity and customers will be satisfied. Producers will also bebenefited and monetary gain can be attained. E-business especially with the help of on line17banking can manage economy of Bangladesh in a better way as customers’ satisfaction canbe increased.Recommendations:To implement e-business successfully in Bangladesh following recommendations are givenbelow:• Digital Bangladesh may be activated by 2021 to develop the economy of Bangladesh.Successful team building with a coherent manner for developing human ware, hardware,software and web ware are required to increase e-business process in a systematic way.Moreover, greater emphasis should be given on security system and to prevent fraud sothat any sort of financial transactions including on line banking payment or any otherelectronic fund transfer can be properly handled.• Career path of hardware and software engineers should be properly designed.Otherwise professionals will be de-motivated and they won’t work with job satisfaction.• In Bangladesh, on line banking systems are yet at a take off stage. The ClearingHouse operation in Bangladesh should be fully automated system. Banks and businessorganizations especially corporate houses should have adequate research, skilledmanpower and technology driven strategies in this regard.• Initiatives to develop integrated e – banking software through in house built may betaken. Preference should be given by the bank authority to use local software over foreignsoftware. Common gateway is required so that inter bank transactions can be feasible.Bank can charge normal profit to enlarge the market size on the on line banking products.Banks should have their own strategic plans to implement on line banking system. Creatingawareness and consciousness among the clients of the banks are also required.• The country needs to develop e-business with the help of ICT facilities. ICTapplication and development of software are very much dependent on the quality of theworkforce, and supportive infrastructure and environment. Upzilla level may be consideredas the base unit which may be connected with district and then connectivity with the capitalof the country can be done. However, more stress should be given on wire free connectivityfor which priority should be given on WIMAX technology.• Public and private participation (PPP) for e-business should be encouraged foreconomic development. Spread of on line banking is a very good initiative. But it is notonly sufficient. Business sector as a whole should be focused on using E-business. It shouldbe accompanied with e-governance system and should be moved towards other areas of the“ e ”to“e” system like e-tender, e-trafficking, e-ticket, e-learning etc. More stress should begiven to the wireless transactions and working environment due to rapid technologicaladvancement.• E-business should be used both for agricultural sector and industrial sector. Equalimportance should be given so that domestic trade and international trade can be effective.Distortion from the market should be driven out and information should be passessystematically.

• E-business can help to improve total quality management. This can also ensure qualityassurance of the business sector. As such business policy formulation and strategies arerequired and this should be properly implemented. Adequate training and technologicalsupport to be developed so that trained manpower and technology driven organizations canbe created with the help of partnership between Govt. and non –Govt. organizations.• Quality maintenance of local software should be arranged. Initiatives should be takento set up hardware industry so that computer and computer accessories can be prepared inthe country and easily purchasable for the lower and lower middle class people. Qualityeducation and training in the field of ICT to develop human resources are essential.18Moreover, entrepreneurship should be developed for developing hardware and computerperipherals.• More high-speed fiber optical data communication infrastructures should be wellestablished for speedy data communication for domestic and global high speedcommunication system. This will help to attain better e-business including on line bankingsystem. Competitive situation should be arranged so that e-business management can beimproved through efficiency and effectiveness of customer services.• BTRC as a regulatory body should work with long term vision, mission and fulfillmentof goal oriented strategies. They should work as a facilitator rather not creating hindrance.VOIP should be legalized after examining and finalizing proper rules and regulations in thecountry.References:Ahmed,Feroz and Islam,Md.Tarikul(2008):”E-Banking: Performance, Problems and Potentials inBangladesh”, Business Review,Vol.06,No.1&2,January to December.Ahmed,Nafid Imran(2010):”Encashing mobile remittance” ,The Daily Star,April,15.Ahsan, AFM Mainul (2009):”E-commerce in Bangladesh”, The Financial Express, Bangladesh,January 12Ali ,Muhammad Mahboob(2003):”E-Business in the age of Globalization: Bangladeshperspective”, The Bangladesh Observer,September,13.Ali,Muhammad Mahboob,Mohsin,Chowdhury ,Sifat-E and Yasmeen Farzana (2004).”E-Businessin the Globaized world with special reference to Bangladesh: An analysis’, BusinessReview,Vol.4,No.1&2.Buffam,William J.(2000):E-business and is solutions :An Architectural approach to BusinessProblems and Opportunities, Addison-Wesely, USA.Chaffey , Dave(2006). E-Business and E-Commerce Management, Prentice Hall: Financial TimesPress, UK , 3rd editionChandrasekhar,M and Sonar, Rajendra M(2008).”Impact of Information Technology on theefficiency and total factor productivity of Indian Banks” ,South Asian Journal ofMangement,Vol.15,No.3,July-September,pp.74-95.Hoq, Ziaul, Kamal, Md. Shawkat and Chowdhury, A H M Ehsanul Huda(2005). “The Economicimpact of E-commerce”, BRAC University Journal, Vol. II, No. 2.http://www.bangladeshinfo.com/gadgets/news_inner.php?nid=2343, July 22, 2009)http://cnews.canoe.ca/CNEWS/TechNews/NewStuff/2006/05/25/1597447-ap.htmlhttp://www.jobsproject.org/content/publication/E-Commerce_in_Bangladesh_status.pdfhttp://www.ecommercejournal.com/news/bangladesh_is_developing_electronic_payment_infrastructure_0?drgn=1Huda,Shakil,Momen,Mohammad Abdul,Ahmed,Mushtaque(2004):”On Line Banking System”,Finance and Banking,, Vo.6,No.1 & 2.Islam ,Majidul and Yang,Yi-feng(2009). “Service Satisfaction, Information trust and e-CRMPerformance in BSV model in the Empirics of Financial Institutions” ,Journal of Business & PolicyResearch,Vol.4,No.1,July.

Kabir, Md. Anwarul(2008): Designing ICT Roadmap: A holistic approach, The New Nation,23rd

July.Nyangosi , Richard, Arora , J.S. ,Singh , Sumanjeet(2009). “The evolution of e-banking: a studyof Indian and Kenyan technology awareness”, International Journal of Electronic Finance.Vol.3,Issue:2Mia,Md.Abdul Hannan, Rahman ,Mohammad Anisur and Debnath, NitaiChandra(2007).”Consumer behaviour of Online Banking in Bangladesh”, Journal of BusinessStudies, Vol.XXVII, No.2,December.Pires ,Guilherme, and Stanton,John(2007):"Macro Issues in Electronic Commerce and ForeignDirect Investment", Global Business & Economics Anthology ,Volume II,December,2007.Rahman,Atiur(2010):”Digital Bangladesh Bank”, The Daily Star,January,13.19Rahman,M.Lutfar(2001-2002):”E-Commerce and Concern for E-commerce in Bangladesh”,Journal of The Institute of Bankers Bangladesh,Vol.48.Ramakrishnan, Ganesh(2001):” Risk Management for Internet Banking”, Information SystemsControl Journal, Volume 6.Shah , Mamood and Clarke , Steve(2009):E-Banking Management: Issues, Solutions, andStrategies ,Information Science Publishing, UK.Shamsuddoha, Mohammad(2008). Electronic Banking in Bangladesh, Journal of BusinessSolutions, Vol. 1, No. 2, December .The Financial Express(Bangladesh),03rd November,2009.The New Nation,28th August,2009.The Daily Star,4th April,2010.Turban,Efraim et al.(2000). Electronic Commence –A Managérial Perspective,Pearson Education.Uddin,Md.Kamal and Islam,ABM Shahidul(2005):”Contribution of Information andCommunication Technology to the Development of Rural Bangladesh”, Dhaka University Journalof Business Studies,Vo..XXVI,No.2.Appendix:Table: A Bank’s Name, services, software uses’ and vendor’s NameService Software use Vendor’s name Bank’s NameCore BankingEquationMisys InternationalBanking System Ltd. UK AB Bank LimitedSTELAR ERA InfoTech LimitedBank Asia LimitedStandard Bank Ltd.Flexcube (IBM AIX,Oracle)Oracle Financial ServicesSoftware Ltd., India (LocalRepresentative: Dataedgelimited)Dhaka Bank Ltd.Eastern Bank Ltd.Citibank N.A. (In-house.. )Dutch Bangla Bank Ltd.PC Bank 2000 Leads Corporation LtdFirst Security Islami BankSocial Islamic Bank Ltd.HUB Core Bank In-houseThe Hongkong &Shanghai BankingCorporation Ltd.Temonas DataSoft Limited Janata Bank Ltd.Flora Bank Flora Systems Ltd.

Mutual Trust Bank Ltd.Jamuna Bank Ltd.A2Z MultiuserBanking SystemA2Z ComputerService,BD National Bank Ltd.PC Bank-2000LEADS CorporationLimited National Bank of PakistanMicro Banker VPro/5 Data-edge ONE Bank Ltd.Bank Ultimus Leads Corporation Ltd Southeast Bank Ltd.eBBS In-house Standard Chartered BankABABILMillinum InformationSystem Ltd (MISL)BDAl –Arafah Islami BankThe City Bank Ltd.Finacle Infosys SolutionBRAC Bank Ltd.The City Bank Ltd.20T24 Temenos SwitzerlandEXIM Bank Ltd.Prime Bank Ltd.Agrani Bank Ltd.Flora UBS Flora SystemNational Credit andCommerce Bank Ltd.Equation BranchServerMisys InternationalBanking System Ltd. UK International FinanceInvestment and CommerceBank Ltd.Equation BranchAutomation DOTrade Innovation DOInfinity BankingSystem Rupali Bank Ltd.Cluster Banking PC Bank 2000 Leads Corporation LtdFirst Security Islami BankUnited CommercialBank Ltd.Phone BankingTele Banking ERA InfoTech BDBank Asia Ltd.Call Center IntegratedSystem In-houseThe Hongkong &Shanghai BankingCorporation Ltd.Flora Bank PhoneBanking Flora Mutual Trust Bank LtdIVR Suprico Standard Chartered BankAccessPhoenix Soft Switch,International Acumen BRAC Bank Ltd.CISCO System LEADSDutch Bangla Bank

Ltd.Telebanking Flora System ltd Jamuna Bank Ltd.SMS BankingMobile BankingManagement SSL Wireless Limited AB Bank Ltd.SMS Banking ERA InfoTech BD Bank Asia Ltd.FlexcubeOracle Financial ServicesSoftware Ltd., IndiaDhaka Bank Ltd.Dutch Bangla BankLtd.SMS Banking LEADS Corp.First Security Islami BankLtd.United Commercial Bank Ltd.Win2000 LEADS Mercantile Bank Ltd.Flora Bank SMSBanking Flora Mutual Trust Bank Ltd.Balance query by CellPhone Business Automation ONE Bank Ltd.Tagged with Banking LEADS Shahjalal Islami Bank Ltd.SMS Banking Upload Systems Southeast Bank Ltd.Mobile Banking In-house Standard Chartered Bank21Web Service,Windows Service In-house BRAC Bank Ltd.For SMS Banking Software Shop Ltd.International FinanceInvestment and CommerceBank Ltd.O/S WAP M/S S.S.LSonali Bank Ltd.City Bank Ltd.Internet BankingOmniEnterprise InfrasoftTech Limited AB Bank Ltd.MyBank ERA InfoTech BD Bank Asia Ltd.FlexcubeDhaka Bank Ltd.Eastern Bank Ltd.Dutch Bangla BankLtd.HSBCnet Advising In-houseThe Hongkong &Shanghai BankingCorporation Ltd.HSBCWin+SQL Server Desktop Limited Janata Bank Ltd.Flora Internet Banking Flora Mutual Trust Bank LtdWeb Statement In-house One Bank Ltd.iBank Ultimus LEADS Southeast Bank Ltd.iBanking In-house Standard Chartered BankPhoenix Soft Access International Acumen BRAC Bank Ltd.CitiDirect USA Citibank N.A.TIB(Temenos InternetBanking)Temenos HoldingsCorporation, Switzerland Prime Bank Ltd.Various Cards

BA’s proprietaryDebit Card ERA InfoTech BD Bank Asia Ltd.CARDPRO BEPSDhaka Bank Ltd.National Credit andCommerce Bank Ltd.Trans Master forPrepaid Credit andDebit Card Tietonator Eastern Bank Ltd.Proprietary DebitCard, PC Bank ATMInterface LEADSFirst Security Islami BankLtd.Dabit Card + CreditCard ITCL, BD Janata Bank Ltd.Win+SQL Server,LEADS Mercantile Bank Ltd.CTL Prime & CTLOnline TSYS International, USA Mutual Trust Bank LtdCardproSungard System,MalayasiaNational Bank Ltd.BRAC Bank Ltd.Prime Bank Ltd.VISA Debit Card,VISA Prepaid Card(International), VISAGift Card Shahjajal Islami Bank Ltd.22eCAPS In-house Standard Chartered BankVISA(Card-Pro) BEPS, Bangladesh Exim Bank Ltd.ACCESS CardManagement International Acumen Standard Bank Ltd.Card Suite(AIX,Oracle) Tleto Enator, LatviaDutch Bangla BankLtd.Q-cash ITCL Jamuna Bank Ltd.Probashi AgraniRemittance card Cash Link, BD Agrani Bank Ltd.Tranzware cardmanagement systemIT Consultants Ltd.,RussiaInternational FinanceInvestment and CommerceBank Ltd.City Ltd.FinacleConnect24 CityBank Ltd.ATM Shared(VISA/MASTER)ITCL AB Bank Ltd.STELAR ERA InfoTech BD Bank Asia Ltd.ITM, EuronetSwitzerlandlocal-CASH LINK

BangladeshDhaka Bank Ltd.Agrani Bank Ltd.ITCL, Q-Cash Singapore Mercantile Bank Ltd.IST switch of DBBL Mutual Trust Bank LtdTranzware,CompassPlus IT Consultants Ltd, RussiaNational Bank Ltd.National Credit andCommerce Bank Ltd.International FinanceInvestment and CommerceBank Ltd.Sonali Bank Ltd.City Bank Ltd.VISA, Q-Cash,OMNIBUS & DBBLswitch & ATMNetwork Shahjajal Islami Bank Ltd.Q-Cash Shared ATMCardUttara Bank Ltd.National Credit andCommerce Bank Ltd.Cardpro Sun GardBRAC Bank Ltd.City Bank Ltd.Card ManagementSystem (CMS) for PC Cashlink Bangladesh LtdSocial Islamic BankLtd.VISA ITCL Jamuna Bank Ltd.ATM own(VISA/MASTER)STELAR Bank Asia Ltd.Wincor NixdorfProtopas ITCL Eastern Bank Ltd.ATMP 6.0 In-houseThe Hongkong & ShanghaiBanking Corporation Ltd.23Q-Cash Singapore Mercantile Bank ltd.Under process -CTLPrime & CTL Online,ATM Controller TSYS International, USA Mutual Trust Bank LtdTietoEnator CardSuite Dataedge One Bank Ltd.ITCL Shahjajal Islami BankSwitching Software Cynergon Intelisys Ltd Southeast Bank LtdATMSPARROW/HAWK,CR2 Standard Chartered Bank Ltd.Phoenix Soft International AcumenBRAC Bank Ltd.Standard Bank Ltd.IST 7.5 HMA STARware,IndiaOrigin-CanadaPrime Bank Ltd.Iswitch Interblocks, Srilanka United Commercial Bank Ltd.

IST(AIX, Oracle) FIS, USADutch Bangla BankLtd.TranzwareCompass Plus, ITConsultants Ltd, Russia City Bank Ltd.EFTFeature available onInternet & SMSBanking Bank Asia Ltd.Eldorado Interblocks (Sri Lanka)Dhaka Bank Ltd.Al –Arafah Islami Bank Ltd.Western UnionMoney Transfer BRAC BankFirst Security BankLtd.Bangladesh Commerce BankLtd.Ease LimitedBD and Desktop Limited,BD Janata Bank Ltd.Through IVR -Servion System DataEdgeBRAC Bank Ltd.Through ATM Own -Phoenix Soft International AcumenThrough InternetBanking- InternetBanking BRAC BankThrough MobileBanking- MobileBanking BRAC BankFTI In-house Citibank N.A.Online Remittances/w In-houseAgrani Bank Ltd.Money GramIMERemitOneInfinity RemittanceMoney GramInternational FinanceInvestment and CommerceBank Ltd.X-press UAE Exchange, UAEPlacid ExpressPlasic N.K corporationUSACoinstar MoneyTransferCoinstar Money Transfer,IndiaSWIFTMessaging, SWIFT AB Bank Ltd.SWIFT Alliance Bank Asia Ltd.24ServiceSWIFTSyscom Information

Systems Limited Dhaka Bank Ltd.SWIFTEastern Bank Ltd.One Bank Ltd.BRAC Bank Ltd.Dutch Bangla BankLtd.Jamuna Bank Ltd.National Credit andCommerce Bank Ltd.SWIFT BelgiumFirst Security Bank Ltd.Mercantile Bank Ltd.Uttara Bank Ltd.Al –Arafah Islami BankPrime Bank Ltd.Social Islamic BankLtd.Standard Bank Ltd.United Commercial Bank Ltd.International FinanceInvestment and CommerceBank Ltd.City Bank ltd.Group MessagingGateway In-houseThe Hongkong &Shanghai BankingCorporation Ltd.SWIFT AllianceJanata Bank ltd.Mutual Trust Bank Ltd.Southeast Bank Ltd.International FinanceInvestment and CommerceBank Ltd.SWIFT Alliance BelgiumNational Bank Ltd.Agrani Bank Ltd.Sonali Bank Ltd.Rupali Bank Ltd.PC CONNECT NBP Karaci, PakistanNational Bank ofPakistanInternational FinanceInvestment and CommerceBank Ltd.SWIFT AllianceAccess 6.0Cambridge Worldwide,IndiaShahjajal Islami BankBangladesh Commerce BankSAM In-house Citibank N.A.25SAA SAM SWIFTEXIM Bank Ltd.PC Banking PC Bank-2000 LEADS CorporationMercantile Bank Ltd.

National Bank ofPakistanPOS TerminalQ-Cash Singapore Mercantile Bank Ltd.Under process -CTLPrime & CTL Online Mutual Trust Bank Ltd.Hypercon Aamra Technology, USA National Bank Ltd.VISA, Q-Cash,OMNIBUS & DBBLswitch & POSNetwork Shahjajal Islami Bank Ltd.Switching Software Cynergon Intelisys Ltd Southeast Bank Ltd.TNMS Aamra TechnologiesSTIS International Acumen BRAC Bank Ltd.Hypercom Aamra(USA) Prime Bank Ltd.Ingenico ATCL(France)Dutch Bangla BankLtd.ITCL Jamuna Bank Ltd.OS/400, Cash Link Agrani Bank Ltd.Tranzware OnlineSwitching IT Consultant, BD, RussiaInternational FinanceInvestment and CommerceBank Ltd.City Bank Ltd.Banking KIOSKERA- KIOSKBankingERA InfoTech Bank Asia Ltd.International AcumenLtd. Eastern Bank Ltd.Colors of Bangadesh Southeast Bank Ltd.Customized S/WInternational Accumen,BDDutch Bangla BankLtd.Offline BranchComputerizationE-BankEthics AdvanceTechnology Ltd. (EATL),BD Bangladesh Shilpa BankJBSoft BankingApplication In-HouseJanata Bank Ltd.Easy Banking Desktop LimitedFlora Bank FloraBexiBank Beximco ComputersJanata Bank Ltd.Sonali Bank Ltd.A2Z MultiuserBanking S/W A2Z Computer Service National Bank Ltd.PCBANK2000 Leads Corporation Shahjajal Islami Bank Ltd.In-house Developed Uttara Bank Ltd.BexiBank4000 Beximco ComputersAgrani Bank Ltd.International Finance26

Investment and CommerceBank Ltd.IBS Infinity TechnologyRupali Bank Ltd.Agrani Bank Ltd.Sonali Bank Ltd.Janata Bank Ltd.Krantibank Kranti Associates LtdAgrani Bank Ltd.FloraBank Flora System LtdDaffodil bank Daffodil Computers LtdABLsofT In-houseAgraniSolution In-houseFlora Bank Software FloraBangladesh Commerce BankLtd.

(Source: Prepared by Filed Observations on 30.12.09)